Gensler: CFTC can do "a great deal more" on technology

Commodity Futures Trading Commission Chairman Gary Gensler gave this opening statment in a meeting of the agency's Technology Advisory Committee on July 14:

Good afternoon. Thank you Commissioner O’Malia for chairing today’s meeting of the Technology Advisory Committee. This is the Technology Advisory Committee’s first meeting since its charter was renewed this year. The futures marketplace has evolved substantially over the course of the last decade. We’ve gone from open outcry trading to predominantly electronic trading platforms. In fact, in today’s futures marketplace, roughly 90 percent of the market is traded electronically.

Though we are fortunate to receive daily trade data and position data electronically, there is much we can learn and great deal more we can do regarding technology. For instance, while in some cases we still receive paper forms from market participants, we are considering putting out rules to automate our Form 40 and Form 102. This will allow us to automate the receipt of important information from the marketplace.

Internally, we are moving toward automation of our surveillance. While market participants have the technology to automate their trading, we must improve our ability to employ modern technology to automate our surveillance.

Aside from our regulation of the futures marketplace, I also am pleased that we are on the verge of the passage of financial regulatory reform legislation. As we take on additional oversight of the over-the-counter swaps marketplace, the advice of this committee will be helpful in considering the technology aspects of the rule-writing process and of the marketplace itself. This committee will help us as we take on all these new responsibilities.

Lastly, I look forward to hearing from today’s panelists on their views regarding algorithmic and high-frequency trading strategies.

Again, I’d like to thank my fellow Commissioners and the Technology Advisory Committee members for participating in today’s meeting. This committee will play a significant role in informing the Commission of emerging challenges and technology so that we can best regulate the markets and protect the American public. I look forward to learning from the presenters and having a good dialogue on the most important technology issues facing the futures marketplace. Thank you again Commissioner O’Malia for calling this meeting.